Qualities / Characteristics of Good Money



A good money material must possess following qualities

General Acceptability:

A great money material is the one that I generally acceptable by all without any hesitation. This means that any one will be willing to just accept it as a mean of payment and in the discharge of any obligation.

Recognizable:

Good money is one that can be easily acknowledged by seeing and touching. It must be of this type of nature that may easily be identified everyone. Further different coins and notes must certainly be of different color and size to be able to avoid of any confusion.

Economical:

A great money material must certainly be economical. The expense of printing currency notes a minting of coins must be low. The material of money must be common at reasonable prices.

Elasticity:

The great money material has the quality of elasticity. The material getting used must be of this type of nature that it can be utilized to improve the way to obtain money if you have increase in demand.

Easily meltable:

The amount of money material should manage to being melted, remelted, can be given suitable shapes and can be stamped. Metals are good money material as these could be given any shape. Paper money can be recycled to produce new notes.

Portable:

Good money material must be of this type of nature that it can easily be transported from spot to another. The paper money can easily be transported from place to a different when compared with coins.

Homogeneous:

The material used as money must be of same quality: otherwise it’ll lack general acceptability. The color, size and weight of the currency notes are kept same so that everyone accepts it in confidence.
Durable:

A good money material must be durable i.e it will not lose value within a short time period. Metals are more durable when compared with any material that’s used as money.

Divisibility:

A good money material must certainly be divisible into small parts without loosing its value. The costly and cheaper thing can be purchased from such money.

Difficult to copy:

A good money is one which is very hard to copy. There has to be certain mark about it which may be easily identified by every one.

Stability of value:

The good money material must be comparatively stable in value. If the worth of material found in money keep on changing it can provide problem for making future payments.

Storability:

One of the qualities of a good money material is that it can be stored for a longer period of time without loosing value to meet the future needs.

Scarcity:

A good money material must be scarce in quantity or the way to obtain money issued must kept low as compared to the desire for it. Scarcity of money can keep people always working hard to earn more income to be able to meet requirements of life.

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